December 17th, 2021 | Updated on May 24th, 2023
Bitcoin was launched in 2009, but it gained a lot of traction in the last few years, Now you cannot browse the web without finding any mention of the technology. Even though there is a lot of information on the internet, people get scammed.
Either people are not yet assured of the security of Bitcoin, or they just want to wait before they experiment with it. Education about the profit revolution is still important to visit the official site for more information. You can make use of the tools offered by, which is a cryptocurrency trading website that provides the right tools to get you started.
This makes the crypto world highly volatile and prone to quick changes. Here we will tell you 10 common terms that you must know when it comes to Crypto technology.
All the cryptocurrency transactions are processed, verified, and then recorded on a virtual ledger. This ledger is known as the Blockchain. Whenever anyone buys or sells using this cryptocurrency, an entry is made on the virtual ledger.
You can think of the blockchain like a series of boxcars on a train. A transaction is made, and another boxcar is added to that train. Blockchain is decentralized, which means you cannot store it in one machine or even across a network. On the other hand, the blockchain can be found on computers from all over the world which you can access because of the internet.
People and companies help in the verification of each transaction that is added to the blockchain with their computer’s processing power on a peer-to-peer network. All the transactions get timestamped, encrypted, and you cannot reverse or change them.
No Fiat is not a car in cryptocurrency terms. Fiat money is actually a government-issued currency. So if you are from the US, this means the US dollar is the Fiat. On the other hand, cryptocurrency is virtual money.
They are not backed by any Government or a standard that is used with traditional currency. Each token is a representation of the amount you own.
The worth of each token is based on the current market value. On one day, it will be up, and on another, it will come down. In the case of cryptocurrency, the fluctuation can happen rather quickly and in quite extreme nature.
An altcoin is a digital currency that is not Bitcoin. There are many such cryptocurrencies, and new ones keep getting added to it all the time. These are the top five currencies in terms of market capitalization.
The crypto universe moves quickly so that the market cap might have changed again.
- Binance Coin
To purchase cryptocurrency, you have to begin with an exchange. You must think of the exchange like a crypto middle person. It is an online service that allows you to swap your Fiat currency for crypto or vice versa.
In case you know what traditional investing is, a crypto exchange will function as a brokerage. You could deposit money using bank transfer, wire, debit card, and any other deposit methods. There will be fees that you will have to pay for each transaction.
You could also buy crypto through other apps like Venmo, Robinhood, or Cash App.
In simple terms, the cryptocurrency wallet is an app or physical storage that lets you store as well as use your digital currency. Wallets can even hold multiple cryptocurrencies, so you are not just limited to having the bitcoin or anyone currency.
Whether you use the app or any physical wallet, you must keep in mind that the currency by itself does not get stored there. In fact, the wallets store location of the currency on the blockchain.
You can split the wallets into two categories, i.e., Hot and cold. A hot wallet is connected to the internet. On the other hand, the cold wallet is not connected to the internet and is hence a more secure way to store cryptocurrency.
The physical wallets are available in multiple types and, in reality, are USB drives that store your crypto so you can use it later. The physical wallets provide maximum protection from any unlawful elements.
Two of the most popular cold wallets are Ledger Nano X and Trezor Model One. The former is preferred as it can support 23 different cryptocurrency types and comes with additional benefits.
You may have heard of mining in terms of Bitcoin. Computers mine the coins by solving complex maths problems. The more the power of your computer, the faster is able to “think.”
So if your computer is the fastest in solving the problem, you can win a unit of whichever crypto you are mining. While there are some cryptocurrencies that have an infinite supply, the others are limited. For example, in Bitcoin, the limit is set at 21 million, and the last coin will get mined in 2140 or before.
You may have also heard of DeFi, which is a short form for decentralized finance. These are those financial transactions that occur without the presence of a “middleman” like a bank, government, or any other financial institution.
NFT spécifies Non fungible tokens. It is another way of saying that “The digital item is irreplaceable and unique.” It can apply to anything you could think of, like online artwork, songs, viral videos, articles, text logos, and GIFs.
Some people collect antique items, vintage cars, art and baseball cards, etc. Now you can turn a digital item into a collectible. These can act as an online status symbol for you.
You can buy an NFT only through cryptocurrency. Use an auction platform, secondary marketplace, or participate in a mint to do so.
Minting is the process by which a file like JPEG or GIF is recorded in the blockchain. After you have minted an NFT, you can sell or trade it. If you are taking part in any mint, it means you are the first one to buy this from the creator.
You may then hold, sell or trade it.
During this minting process, the creator mentions the royalties they will get from the sales. This acts as a commission if the work by chance moves from one person to another in the future.
Many artists who want to go digital take this as an opportunity to strike rich. In case you sell an NFT on a secondary marketplace, you will get a chunk from its sale.
Here is a term that you might have seen on social media. HODL means “hold on for dear life.” Some people say it started off as a typo error on the word “hold” in a Bitcoin forum, but now it is used like that.
The idea behind it is very simple. If you see that a project or currency is going to get more value, you will “hodl” it even if its value dips in the market.